IMPALA PLATINUM HOLDINGS LIMITED - First quarter p31 Oct 2017
IMP 201710310007A
First quarter production report for the period 1 July 2017 to 30 September 2017

IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
ISIN: ZAE000083648
(˘Implats÷ or ˘the Group÷)


First quarter production report for the period 1 July 2017 to 30 September 2017

ImplatsĂ Chief Executive Officer, Nico Muller, commented, ˘Safety remains an issue at Impala
Rustenburg and Marula. This is being dealt with at all levels within the Group to receive the
necessary support and resources to reverse these poor safety performances. We are pleased to
note early signs of improvement in efficiencies and production levels at the Impala Rustenburg
operations in line with planned interventions. Zimplats, Mimosa and Two Rivers delivered another
strong operating performance during the quarter, while Marula, which has undergone an
organisational restructure recently, delivered a pleasing turnaround and an increase in
concentrate production.÷

                                                                Unaudited             Unaudited
  Operational information                                     Quarter ended         Quarter ended
                                                            30 September 2017     30 September 2016

  Gross production:
  Tonnes milled                                     000t                 6 741                 6 149
  Grade (6E)                                          g/t                  3.83                 3.95
  Platinum in concentrate (mine-to-market)         000oz                    349                  327
  Platinum in concentrate (third-party and toll)   000oz                   100                   57

  Platinum refined                                 000oz                   341                  365
     Impala platinum refined                       000oz                   133                  151
     IRS platinum refined                          000oz                   209                  215
  Palladium refined                                000oz                    189                  223
  Rhodium refined                                  000oz                     46                   44
  Nickel refined                                    000t                   3.71                 3.97


  Managed operations production:

  Impala
  Tonnes milled                                     000t                  2 984                2 433
  Grade (6E)                                          g/t                  3.95                 4.17
  Platinum in concentrate                          000oz                    181                  156
  Platinum refined                                 000oz                    133                  151

  Zimplats
  Tonnes milled                                     000t                  1 690                1 703
  Grade (6E)                                          g/t                  3.49                 3.49
  Platinum in concentrate                          000oz                     71                   71
  Platinum in matte                                000oz                     47                   51
                                                                              
  Marula
  Tonnes milled                                      000t                    498                  446
  Grade (6E)                                           g/t                  4.43                 4.41
  Platinum in concentrate                           000oz                     23                   21

  JV operations production:

  Mimosa
  Tonnes milled                                      000t                    717                  690
  Grade (6E)                                           g/t                  3.86                 3.80
  Platinum in concentrate                           000oz                     32                   30

  Two Rivers
  Tonnes milled                                      000t                    852                  877
  Grade (6E)                                           g/t                  3.70                 4.12
  Platinum in concentrate                           000oz                     42                   49


  Group and third party production:

  IRS
  Platinum refined                                  000oz                   209                  215
    Mine-to-market platinum refined                 000oz                   151                  145
    Third-party and toll platinum refined           000oz                    57                   70




SAFETY
Implats remains committed to ensuring zero harm and the GroupĂs safety strategy is premised on
providing an inherently safe work environment, maintaining leading safety practices and
inculcating safe behaviour at all times. Management remains resolute in leading this imperative
through direct engagement with all our stakeholders, including each employee in the organisation,
the leadership of our representative unions and government.


Regretfully, Implats has experienced a disappointing safety performance over recent months, with
Impala Rustenburg recording two incidents during the quarter in which three employees suffered
fatal injuries. Post the end of the quarter, another two employees sadly passed away at Impala
Rustenburg after extended medical treatment following incidents which occurred during the period
under review. Regretfully, Marula also experienced a fatal incident during October 2017. The
company has provided support to the families of the deceased, while the board of directors of
Implats and the management team have extended their very sincere sympathies to the family,
friends and colleagues of these employees.

Following these incidents, management has worked closely with the safety directorate of the
Department of Mineral Resources (˘DMR÷) and the worker representative structures of the
Association of Mine Workers and Construction Union (˘AMCU÷) to effect corrective measures to
arrest the decline in safety performance and agree on initiatives to prioritise safe production,
particularly at the Impala Rustenburg operations.
                                             
PRODUCTION
Tonnes milled across the Group during the quarter increased by 9.6% to 6 741 000 tonnes,
compared to 6 149 000 tonnes achieved in the prior corresponding period.

The increase was largely as a result of a much stronger operational performance at Impala,
compared to a poor first quarter performance in the prior corresponding period. Consequently,
platinum in concentrate produced during the quarter across all mining operations (managed and
Joint Venture), increased by 6.7% to 349 000 ounces, compared to 327 000 ounces in the prior
corresponding period.

Notwithstanding the strong performance from all operations across the Group, final refined metal
output was significantly impacted by a concentrate stock build-up following scheduled furnace
maintenance at both the Impala and Zimplats operations. Consequently, gross refined platinum
production during the quarter decreased by 6.6% to 341 200 ounces, compared to
365 200 ounces achieved in the prior period.

Planned maintenance was undertaken during the quarter at the Impala number 3 and number 5
furnaces and at the Zimplats furnace. During the maintenance of the Impala number 5 furnace,
excessive wear in some areas became apparent and a decision was taken to completely refurbish
it. As a result, the furnace is now only scheduled to come back on-line from December 2017,
which will impact planned pipeline stocks at half-year and year-end, given that capacity constraints
at the base metal refinery will not allow all the accumulated smelter matte stocks to be fully
processed during the 2018 financial year. Consequently, notwithstanding mined production being
in line with guided levels, gross refined platinum production for the Group is now expected to be
between 1.51 and 1.56 million ounces of platinum in 2018.

Impala
Impala delivered a much improved operational performance compared to the previous comparable
period, which was negatively impacted by the 14 Shaft decline fire and 1 Shaft fall-of-ground safety
incident. During the current quarter, in line with FY2018 guidance, improved efficiencies have
started to materialise, resulting in higher output, following the introduction of various initiatives at
the operation. Consequently, tonnes milled during the quarter increased by 22.6% to 2 984 000
tonnes, compared to 2 433 000 tonnes in the previous comparable quarter. The mill grade (6E),
which deteriorated by 5.3% to 3.95g/t, was impacted by ore pass rehabilitation work at 16 Shaft
and an increase in lower grade reef development compared to the prior corresponding period.
This resulted in platinum in concentrate produced at Impala increasing by 16.0% to 181 000
ounces, compared to 156 000 ounces in the prior period.
                                                  
Zimplats
Zimplats sustained operational performance at above design capacity with mill throughput and
grade largely unchanged at 1.69 million tonnes and 3.49 g/t (6E) respectively. As a result,
platinum in concentrate produced at the operation during the quarter remained unchanged at
71 000 ounces. However, platinum in matte was again impacted by scheduled furnace
maintenance during the quarter. The furnace was switched off for a planned 49-day sidewall reline
at the end of August 2017. Metal produced from the concentrators during the shutdown period
will be exported as concentrate during the quarter ending December 2017. Consequently, matte
production during the quarter reduced by 7.8% to 47 000 ounces, compared to 51 000 ounces in
the prior corresponding period.

Marula
Marula delivered an improved operational performance, in line with the performance conditions
set by the Implats board of directors and market guidance for the 2018 financial year. Tonnes
milled during the period increased by 11.7% to 498 000 tonnes, compared to 446 000 tonnes in
the prior corresponding period. This increase was achieved following business restructuring
initiatives completed in the prior financial year and ongoing multi-stakeholder interventions to
prevent community protest action and business interruptions. As a result, platinum in concentrate
production improved 9.4% to 23 200 ounces compared to the 21 200 ounces in the prior
corresponding period.

Mimosa
Mimosa sustained its strong operational performance with tonnes milled during the period
increasing by 3.9% to 717 000 tonnes, compared to 690 000 tonnes in the previous comparable
quarter. Platinum production in concentrate increased 5.6% to 32 200 ounces from 30 500 ounces
in the prior corresponding period on the back of the improved tonnage and a 1.8% higher mill
grade.

Two Rivers
Two RiversĂ mill throughput and head grade were impacted, as expected, by split reef areas
currently being mined before further high-grade areas can be accessed. Consequently, tonnes
milled decreased 2.8% to 852 000 tonnes, compared to 877 000 tonnes in the previous
comparable quarter, and the mill grade (6E) deteriorated by 10.2% to 3.70g/t. This impacted
platinum in concentrate production, which decreased by 15.6% to 41 600 ounces, compared to
49 300 ounces in the prior comparable period.

Impala Refining Services (˘IRS÷)
Increased deliveries from third-party customers during the period were more than offset by the
build-up in concentrate stocks as a result of scheduled furnace maintenance at both the Impala
and Zimplats operations. As a result, IRS refined platinum production during the period decreased
2.7% to 208 700 ounces, compared to 214 500 ounces in the prior comparable quarter.

The above information has not been reviewed and reported on by the GroupĂs external auditors.


QUERIES

 Johan Theron                                      Alice Lourens
 Group Executive: Corporate Relations              Group Corporate Relations Manager
 E-mail: Johan.Theron@implats.co.za                E-mail: Alice.Lourens@implats.co.za
 Tel:    +27 11 731 9013/43                        Tel:    +27 11 731 9033/43
 Cell: +27 82 809 0166                             Cell: +27 82 498 3608



Johannesburg
31 October 2017

Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited




                                               

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